Kering Shares Surge on Paris Bourse Despite Sharp 2025 Profit Decline
PARIS, 10 February 2026 – Shares in French luxury conglomerate Kering soared by as much as 16% on the Paris Bourse today, leading a broader rally in the European luxury sector. The market reaction comes as the group reported fourth-quarter sales that fell less than analysts had feared, providing a glimmer of hope for the turnaround strategy led by CEO Luca de Meo.
Gucci Stabilisation Fuels Investor Optimism
The parent company of Gucci, Yves Saint Laurent, and Balenciaga reported a challenging 2025 fiscal year, marked by a 56% drop in recurring net profit to €532 million. Total revenue for 2024 had reached €17.2 billion, but the group faced significant headwinds throughout 2025 as it navigated a complex restructuring phase.
However, the focus for investors on Tuesday was the fourth-quarter performance. Revenue at Gucci, which accounts for the bulk of the group’s profits, fell by 10% on a comparable basis—an improvement over the 12% decline anticipated by the market. This “less bad than expected” result has sparked optimism that the brand’s creative transition and the leadership of Luca de Meo, who took the helm in September 2025, are beginning to stabilise the house.
Financial Performance and Market Data
While the annual figures highlight the scale of the task ahead, Kering Eyewear remained a bright spot, with revenue reaching €1.6 billion in 2025, representing a 3% increase on a comparable basis. The group enters 2026 with a clear mandate to deleverage its balance sheet and return to organic growth.
| Key Metric (FY 2025) | Value / Performance |
|---|---|
| Recurring Net Profit | €532 million (Down 56%) |
| Gucci Q4 Revenue | -10% (Better than -12% forecast) |
| Kering Eyewear Revenue | €1.6 billion |
| Stock Performance (10 Feb 2026) | Intraday peak of +16% |
| Total Employees (End of 2024) | 46,930 |
The “De Meo” Effect and 2026 Outlook
The 2026 outlook remains cautious but hopeful. Kering management stated that they aim for a return to growth this year, following ten consecutive quarters of sales declines at Gucci. The market’s positive reaction today contrasts with the stock’s 14% decline earlier in 2026, suggesting that investors are once again betting on a successful “turnaround” narrative.
Analysts at Morgan Stanley maintained an “Overweight” rating on the stock today, noting that despite the current volatility, the valuation remains attractive as the group streamlines its brand-centric luxury structure.
Frequently Asked Questions
Who currently leads Kering?
François-Henri Pinault serves as the President of Kering, while Luca de Meo has been the Chief Executive Officer since September 2025.
Why did Kering shares rise if profits fell?
The stock market often reacts to expectations rather than raw figures. Because the fourth-quarter sales decline (particularly at Gucci) was less severe than analysts predicted, investors viewed the results as a sign that the company’s downturn may have bottomed out.
Who owns the majority of Kering?
Kering is 42.3% owned by Artémis, the holding company controlled by the Pinault family. The remaining shares are held by institutional and individual investors on the public market.